Labor revolt looms over single parent welfare changes

Labor backbenchers have spoken out against changes to the welfare system, which have seen tens of thousands of parents off the single parent payments and on to the dole.

Caucus members are pushing for the policy, which was passed through the Senate in October, to be changed in next month's budget.

In 2006, the Howard government changed the rules so that single parents were moved on to the dole when their youngest child turned eight instead of 16.

The changes were grandfathered so parents already on the payment were not penalised.

Labor passed legislation removing that exemption, pushing about 68,000 on to Newstart immediately, with the number expected to exceed 100,000 as more children reach the age limit.

Stephen Jones, the Member for Dapto in NSW, says he opposed the scheme when it was introduced by the Howard government and remains against it.

"I haven't changed my view about my concerns about moving people off one benefit onto a lower benefit, particularly where you're not providing the support and other additional assistance to get them into the workforce," he told 7.30.

"I didn't join the party to take $100 a week off single parents, and I think there's a real angst in the party that we've gone to this stage," he said.

I didn't join the party to take $100 a week off single parents and I think there's a real angst in the party that we've gone to this stage.

Doug Cameron

Acting Employment Minister Kate Ellis says there is evidence that since the change began in January, thousands of parents are working more.

"Four-thousand people who were receiving parenting payment, who were receiving absolutely no fortnightly income on January 4, are now in the workforce. I think that's a hugely positive step," she said.

Single mums

Jacqueline Knox, from the outer Sydney suburbs, is battling to raise two young daughters and worries she will end up on the street.

She has been working part-time for the past 17 years and is about $93 per week worse off since the changes began in January.

"I have no idea how I'm going to pay my rent out of that. I'm just stunned that they would hit the poorest," she said.

She says her daughters have had to miss out on dental treatment and after-school activities.

As well as the financial pressure, she is furious at the way single mothers have been portrayed.

"Disgusted. I've worked in my current job for the last 17 years and have been moved on to Newstart. That's why I want to tell my story," she said.

All single parents aren't doll-bludging, spitting out baby after baby, going to the beach, getting their nails done, their hair done, drinking lattes all day.

Jacqueline Knox

"That all single parents aren't doll-bludging, spitting out baby after baby, going to the beach, getting their nails done, their hair done, drinking lattes all day."

Ms Knox believes it would be much fairer for single parents to remain on the old payments until their children turn 16, an age when it is easier to work full-time as children can work part-time and require less supervision.

MP revolt

A number of government MPs agree the policy is overly punitive, with some mothers who are already working losing between $100 and $200 per fortnight.

Senator Cameron says optimism among some MPs that the policy will be overhauled may be misplaced.

"There's been a consistent view within caucus that something should be done about it," he said.

"I'm not sure that view has permeated to the executive of the party and the leadership of the party because we still get these arguments that it's an incentive for people to get a job.

"I can't see how putting children into poverty is an incentive to get a job."

Mr Jones declined to discuss the level of support in caucus for a change, but says voters have complained in his south Sydney electorate.

"I have been approached by constituents in my electorate, I'm certain that my colleagues in other parts of the country have been approached as well," he said.

"Yes it's an issue, I think we need to look at that, particularly that issue around the taper rates and I hope we're able to do it sooner rather than later."

Ms Ellis will not speculate on any changes in the budget but says the Government has a good record on employment and families.

"I'm going to leave it to the Prime Minister and the Treasurer to reveal what may or may not be in the budget," he said.

"But what I will say is that we have absolutely shown we are a government that is committed to supporting families, supporting individuals to get the dignity of work and we will always look at ways that we can further encourage that."

Single parents are planning protests in capital cities around the country on Saturday.